President Samia: Tanzanian government continues with negotiations on LNG project continuing

Dodoma. Tanzanian President Samia Suluhu Hassan has told the National Assembly that Tanzania is pressing ahead with negotiations on the multi-billion-dollar Liquefied Natural Gas (LNG) project, describing the talks as being at an advanced and encouraging stage.

Addressing lawmakers in Dodoma on November 14, President Samia said the government had taken deliberate care in the negotiations to safeguard national interests and ensure the long-term benefits of the project to Tanzanians.

“We have taken time because we want to make sure that, as we negotiate, we fully protect the country’s broader interests and guarantee that this project benefits Tanzanians directly,” she said.

The LNG development, one of the largest energy investments ever pursued in the country, will be built at Likong’o village, about 20 kilometres north of Lindi town on the southern coast.

The proposed plant is expected to host between two and three liquefaction trains, with an initial production capacity estimated at 10 to 15 million tonnes per annum.

President Samia noted that the scale of the $42 billion project makes it central to Tanzania’s long-term economic ambitions, adding that it would “completely transform the country’s economic landscape”.

She said further research on onshore and offshore natural gas reserves would continue as part of the Government’s broader strategy to develop the sector.

The project has been under negotiation for several years, involving international oil and gas companies, including Equinor, which is one of the lead developers.

Talks were revived in 2021 after earlier delays, with the government seeking a development framework that balances investor requirements with expectations of local content, fiscal returns and job creation.

Tanzania holds an estimated 57 trillion cubic feet of recoverable natural gas reserves, most of which are located offshore in the deep waters of the southern coast.

The LNG project is meant to provide a large-scale processing and export pathway for these reserves, enabling the country to tap into global gas markets while also expanding its domestic gas infrastructure.

The Head of State told legislators that, once completed, the facility would position Tanzania as a significant player in the global LNG trade and strengthen government revenue streams through exports, associated taxes and investment in support infrastructure.

She stressed that the project’s design incorporates long-term commitments on local participation, skills development and procurement opportunities for Tanzanian firms.

Negotiations are expected to culminate in a Host Government Agreement and other commercial arrangements that will pave the way for the developers to take a final investment decision. If realised, the project would be among the largest industrial undertakings in East Africa.

President Samia said the Government remains committed to creating a predictable investment environment to unlock the potential of the natural gas sector and support wider economic transformation.